Gabelli Utility Trust Continues Monthly Distributions, Declares Distributions of $0.05 Per Share
11 Noviembre 2022 - 7:47AM
Business Wire
The Board of Trustees of The Gabelli Utility Trust (NYSE:GUT)
(the “Fund”) approved the continuation of its policy of paying
fixed monthly cash distributions. The Board of Trustees declared
cash distributions of $0.05 per share for each of January,
February, and March 2023.
Distribution Month
Record Date
Payable Date
Distribution Per Share
January
January 17, 2023
January 24, 2023
$0.05
February
February 13, 2023
February 21, 2023
$0.05
March
March 17, 2023
March 24, 2023
$0.05
Each quarter, the Board of Trustees reviews the amount of any
potential distribution from the income, realized capital gain, or
capital available. The Board of Trustees will continue to monitor
the Fund’s distribution level, taking into consideration the Fund’s
net asset value and the financial market environment. If necessary,
the Fund will pay an adjusting distribution in December which
includes any additional income and net realized capital gains in
excess of the monthly distributions for that year to satisfy the
minimum distribution requirements of the Internal Revenue Code for
regulated investment companies. The Fund’s distribution policy is
subject to modification by the Board of Trustees at any time, and
there can be no guarantee that the policy will continue. The
distribution rate should not be considered the dividend yield or
total return on an investment in the Fund. The Gabelli Utility
Trust has paid a distribution to shareholders every month since
October 1999.
The Fund’s shares are currently trading at a premium to net
asset value. The Board of Trustees believes that the premium at
which the Fund shares trade relative to net asset value is not
likely to be sustainable. Shareholders participating in the Fund’s
dividend reinvestment plan should note that at the current market
price, the reinvestment of distributions occurs at a premium to net
asset value.
All or part of the distribution may be treated as long-term
capital gain or qualified dividend income (or a combination of
both) for individuals, each subject to the maximum federal income
tax rate for long term capital gains, which is currently 20% in
taxable accounts for individuals (or less depending on an
individual’s tax bracket). In addition, certain U.S. shareholders
who are individuals, estates or trusts and whose income exceeds
certain thresholds will be required to pay a 3.8% Medicare
surcharge on their "net investment income", which includes
dividends received from the Fund and capital gains from the sale or
other disposition of shares of the Fund.
If the Fund does not generate sufficient earnings (dividends and
interest income, less expenses, and realized net capital gain)
equal to or in excess of the aggregate distributions paid by the
Fund in a given year, then the amount distributed in excess of the
Fund’s earnings would be deemed a return of capital. Since this
would be considered a return of a portion of a shareholder’s
original investment, it is generally not taxable and would be
treated as a reduction in the shareholder’s cost basis.
Long-term capital gains, qualified dividend income, investment
company taxable income, and return of capital, if any, will be
allocated on a pro-rata basis to all distributions to common
shareholders for the year. Based on the accounting records of the
Fund currently available, each of the distributions paid to common
shareholders in 2022 would include approximately 4% from net
investment income, 1% from net capital gains and 95% would be
deemed a return of capital on a book basis. This does not represent
information for tax reporting purposes. The estimated components of
each distribution are updated and provided to shareholders of
record in a notice accompanying the distribution and are available
on our website (www.gabelli.com). The final determination of the
sources of all distributions in 2022 will be made after year end
and can vary from the quarterly estimates. Shareholders should not
draw any conclusions about the Fund’s investment performance from
the amount of the current distribution. All individual shareholders
with taxable accounts will receive written notification regarding
the components and tax treatment for all 2022 distributions in
early 2023 via Form 1099-DIV.
Investors should carefully consider the investment objectives,
risks, charges, and expenses of the Fund before investing. For more
information regarding the Fund’s distribution policy and other
information about the Fund, visit www.gabelli.com or call:
David Schachter (914) 921-5057
About The Gabelli Utility Trust
The Gabelli Utility Trust is a diversified, closed-end
management investment company with $345 million in total net assets
whose primary investment objective is to seek long-term growth of
capital and income by investing primarily in utility companies
involved in the generation and distribution of electricity, gas,
and water. The Fund is managed by Gabelli Funds, LLC, a subsidiary
of GAMCO Investors, Inc. (OTCQX: GAMI).
NYSE – GUT CUSIP – 36240A101
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version on businesswire.com: https://www.businesswire.com/news/home/20221111005297/en/
The Gabelli Utility Trust Investor Relations Contact: David
Schachter (914} 921-5057 dschachter@gabelli.com
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